It is about construction management

1. UNIVERSITY OF RWANDA
COLLEGE OF SCIENCE AND TECHNOLOGY
DEAPRTMENT OF CONSTRUCTION MANAGEMENT
COURSE TITLE: CONSTRUCTION MANAGEMENT 1
COURSE CODE: QUS 3166
SEMESTER: FIRST
CREDITS: 10
COURSE LECTURER: OLUWASEUN SUNDAY DOSUMU
(HND, B.SC, M.SC, PHD, MNIOB, R.BLDR)

2. COURSE OUTLINE
• Introduction to construction management (soft skills acquisition;
difference from project management)
• Introduction to material, labour, equipment, and job site management,
supply-chain management
• Dispute prevention and resolution
• Labour regulations/statutory legislation relating to industrial dispute,
trade unions, payment of wages, etc.
• Just-in-time (JIT) concept

3. COURSE OUTLINE (CONT’D)
• Management Information System (MIS)
• Work study
• Operation research (Operation and methods)
• Data classification- coding, storage, retrieval, analysis, etc.

4. RESOURCE MANAGEMENT
• As a construction manager, the core duty is monitoring and control of projects
• The resources of construction projects are the subjects of monitoring and
control
• Four resources are primarily managed as CM and they are: Manpower (labour),
machines (equipment), materials and money [4Ms]
Labour (manpower) management
Part of the jobs of a CM is to complete and submit accurate time records of
those under his supervision as well as the task(s) to which they have been
assigned.

5. Labour (manpower) management (Cont’d)
• Time card may be completed daily for each work crew to ensure that only those
on the job receive wages, thus preventing theft of the contractor’s money.
• Time card records may be used as the basis for the amounts to be paid to each
labour. Time cards are used for cost accounting purposes. This allows contractor
to compare actual labour cost with budgeted costs. It can also help future
projects
• Apart from time card, Brass tags may be used for checking workers in and out
of the jobsite. A tag remaining on the tag storage board during the workday
indicates an absent worker. This helps to compare time card record.

6. Motivation of labor (workforce)
Motivation of labour is a key function of a CM, because construction is labour-
intensive and takes large budget. So, project success depends on labour
motivation using the following ideas:
• Furnish them with information about the company and how the project fits
into the company’s overall programme, when they are employed
• Tell them about the project and the role they are expected to play
• Ensure employees get steady work as much as possible
• Ensure they have opportunities to air their grievances following a clear
procedure

7. Motivation of labor (workforce) Cont’d
• Ensure employees get feelings of fair treatment among their counterparts on
issues that relate to work assignments and their grievances
• Benefit packages such as insurance, holidays, profit sharing and bonuses
should be given with clear conditions for getting them if necessary
• Give public recognition (newsletters, etc.) to performers and private criticisms
to non-performers
• Introduce a good, well planned and well administered safety programme
• Create opportunities for growth within the organization with clear guidelines
for promotions

8. • Ensure there is clear communication on assignments and feedback on
performance
Challenges with labour management and their solutions
• Drug and alcohol abuse, accidents, low productivity, poor quality of work,
absenteeism, high employee turnover, high insurance costs and damage to and
destruction of property are the challenges faced.
• Solution is to have effective substance abuse program, contractor’s jobsite
supervision, and make it a company priority. programs may include urine
testing, searches, supervisors’ training, counselling and rehabilitation,
discipline and termination for cause.
• Other challenges are jobsite crime like loss of tools through theft, damage to
work in progress, temporary facilities and project documents. Not all these
crimes are committed by labours; some are by trespassers

9. Labour productivity
• Productivity defined as units or value of output, adjusted for inflation,
divided by hours of labour or equipment input
• Studies suggested that up to 45% of workers’ time on site are non-
productive
• Others reports indicate that, more than half the wasted time is due to poor
job management.
• Many factors such as inefficient plant and tools, poor design and overly
restrictive government regulations have been traced to wasted time and low
productivity.

10. Factors affecting labour productivity on construction jobsite
Level of training
• The trend towards non-union contracting has led to fewer well-trained employees
and contractors are reluctant to invest in training programmes because the
workers are likely to work for another contractor at other times.
Working conditions
• The conditions under which employees work influence productivity. The
conditions include jobsite layout and accessibility, level of housekeeping and
cleanup, the potential for unsafe conditions and accidents and such
inconveniences as congestion and poor lighting, heating and ventilation.
Level of employee motivation
• Reports show that the most common worker complaints that influence motivation
and thus disrupt productivity include unavailable materials, unsafe working
conditions, rework, unavailability of tools or plant, lack of communication and
disrespectful supervisors.

11. Tardiness and absenteeism
• These two factors may be caused by lack of motivation. Tardiness can be controlled
by establishing and enforcing reasonable and understandable working time rules.
Programming and schedule control
• Through proper planning and control of the schedule, all required predecessor
activities should be completed before a crew is sent to begin its task
Material management
• If materials are delivered late, incomplete, defective, stored far from position of
installation, and/or double-handled, unnecessary work and labour productivity will
occur.
New technology
• Almost all tasks on a site have seen changes due to advances in technology in recent
years. While contractors are understandably reluctant to embrace these changes for
different reasons, the extent of willingness to implement these changes can impact
productivity

12. Length of working week (overtime)
• Some studies argue that, scheduled overtime can be counterproductive, especially when it
continues for several weeks above the 40hrs per week work time
Changes in the work
• Whatever the source of changes to work, workflow can be interrupted, crew and
supervisor’s time may be consumed, and confusion can result.
Project uniqueness
• Uniqueness of project means that some of the work will have to be learnt anew. This may
lead to inefficiencies.
Environmental conditions
• Precipitation, extreme temperature and humidity have negative effects on construction
productivity.
Contractual arrangements
• The manner in which contract is drafted determined non=productive times. E.g. non-
working forepersons, mandated time-off with pay, etc.

13. Note: The CM has little influence on some (the last four) of these factors
Materials Management
• Materials are all physical objects that become part of a finished structure. E.g. soil,
concrete, steel, timber, paving, air ducts, electrical cable, conveyors, medical diagnostic
devices, bank vaults and kitchen stoves and refrigerators
• The management of a construction materials must begin before operations start at jobsite.
• Technical specifications must be prepared by the design professional stating material
qualities and sometimes specific manufacturers.
• Then, the contractor estimates the costs of materials, based on historical experience and
prices from suppliers; he also develops a preliminary plan that states the methods of
installing the various materials.
• An important part of project mobilisation is buyout, in which orders for materials and
equipment are placed.

14. Classification of materials
(1) Bulk materials: materials that require little or no off-site fabrication. They
require short times for delivery after an order is placed and requirements for
submittals to the owner or its representative for approval prior to delivery are
usually confined to standard literature that proves the material meets
specifications. E.g. reinforcing mesh and water piping materials
(2) Manufacturers’ standard items: these need some fabrication. They require
complex submittals, usually including detailed drawings and samples; the time
from placement of the order to delivery on site (including manufacture as well as
submittals and approvals). E.g., metal decking, wall coverings, pumps and lighting
fixtures
(3) Fabricated or customised items for a particular project: Same process as (2).
E.g., reinforcing and structural steel, custom cabinetry and special doors and
windows.

15. Material procurement
A construction company’s purchasing policy is based on one or more of the
following factors:
(1) price (2) quality assurance (3) delivery schedule
(4) vendor responsibility and (5) quantity control.
• Some of these factors relate directly to the material suppliers, while others
like quantity control are for the contractors firm to manage
• It is a policy issue to determine whether material procurement should be
centralised or carried out at jobsite.
• Contractors with regional or nationwide range may establish project offices,
capable of conducting most or all of the procurement function.

16. Advantages of jobsite/local procurement
• Positive relationships will engender in the local community
• Probable better service in case of mistakes or emergencies
Advantages of centralized procurement
• Result in lower prices because larger quantities can be procured at one time
• Long-term, high-volume customers tend to be favoured in times of shortages
• Excess materials on one project can be more easily utilised on other projects
• Better financial control of the purchasing function can be achieved

17. Steps involved in material procurement process
• Receipt and evaluation of offers
• Purchasing or placement of purchase order
• Approval by the owner or owner’s representative
• Expediting or contact with the supplier to assure timely delivery
• Fabrication
• Shipping
• Delivery and
• Inspection

18. • Expediting or contacting supplier to assure timely delivery, fabrication,
shipping, delivery and inspection. Expediting is the follow-up action that is
done to ensure materials are delivered as scheduled. This is done periodically
on jobsite through e-mails, phone calls, personal visits
• Materials should not be delivered too early so the contractor’s money is not
tied up in material inventory, storage space challenge is not encountered, and
materials are not subject to pilferage, breakage or spoilage. If they are
delivered too late, negative impacts on the programme can occur.
• Thus, achieving a balance between too early and too late is always a challenge.
• One way to balance it is through the Just-in-time (JIT) deliveries

19. • When materials get to site it will be unloaded from truck and inspected.
Unloading contains disputes such as, who is to unload? the truck driver, their
helpers, the labourers on site, or fixers?
• The inspection is to ensure that materials comply with drawings and
specifications and have been supplied in the proper quantity. Inspection is
crucial to the smooth installation of materials and it must be carried out
immediately after delivery to allow identified corrections to be made
promptly.
• Inspection may include material testing for proof of quality

20. • Materials must be sorted when they arrive at the storage location, for ease of
later identification.
• The fewer times materials are handled, the more efficient the installation is
likely to be.
• Materials for high-rise buildings must be hoisted to floor before the one
under construction
• Adequate physical protection (against rain, snow, very hot or very cold
temperatures, sunlight and wind,) of stored materials is important
consideration. This is in addition to protection against fire and theft.

21. • Except for minor items where some steps may not be required, all the
procurement process will be followed, especially for those materials that are
manufactured specifically for the particular project
• In the process of compiling cost estimate for a tender, the contractor may receive
by post, fax, telephone or e-mail, offers from material suppliers
The management of the receipt and evaluation of the offers require organisation and
skill in ascertaining exactly what is being offered. Hence, the questions that the
estimator may ask include:
• Does the offer meet the plans and specifications? Is a substitution being offered?
Will these materials come from inventory or from special order? What is the
supplier’s manufacturing capability? Can the supplier meet the required delivery
schedule? Are delivery costs included in the offered price? Are taxes included?
Does the offer include the cost of loading and unloading the materials?

22. • It is likely that offers will not have been received for all materials during the
tendering process; in that case, the estimator may have to make a ‘best
guess’ of the cost, based on prior experience and judgment
• Except for very small projects, the terms of each purchase are incorporated
in a purchase order, which is a contract between the contractor and the
supplier.
Purchase orders are intended to do the following:
I. Establish the responsibility for buying the things that are needed only
II. Tell the supplier in writing exactly what has been ordered; how, when, and
where it is to be shipped; how much the company expects to pay for it; and
any other information necessary to fill the order promptly and accurately

23. III Provide an internal check on purchasing, receiving, and payment of money for
purchases
Basic elements of a purchase order
• Quantity or number of items required
• Item description, ranging from a standard description and stock number from a
catalogue to a complex set of drawings and specifications
• Unit price
• Special instructions and
• Signatures of agents empowered to enter into a contractual agreement.

24. EQUIPMENT MANAGEMENT
• Equipment, plant or machinery represent the machines that carry, hoist or move
materials and components to and around jobsite. It also includes machines that
remove, process or convert materials.
• Equipment are moved to site during construction operations phase and are not
incorporated into the finished project.
• Some equipment become permanent as they form part of the finished project.
(Assignment for the class)
• Equipment may be fixed (e.g. concrete batching plant)or moving (on tyre/track, also
called rolling equipment)
• Equipment plays a larger role and has a larger proportion of the budget in a highway
than building projects

25. Types of equipment (Assignment on drawings)
• Excavation and loading: Crawler, truck or wheel mounted cranes, shovels,
draglines, tractors with blades (bulldozers) and scrapers.
• Compaction and grading: Various types of rollers, some vibratory; used to
provide mechanical means to increase soil density. Motor graders and
grade trimmers to shape soil and bring it to proper elevation.
• Drilling and blasting: Percussion, rotary and rotary-percussion drills to
provide holes in rock for the placement of explosives. Tractor-mounted
rippers for penetrating and prying rock.
• Automated tunnelling machines with multiple cutter heads: capable of
cutting full diameter tunnels in rock.

26. • Lifting and erecting: Derricks and tower cranes, both of which are mounted in
a stationary position, plus truck-mounted or tractor-mounted mobile cranes.
• Material and personnel hoists: used to move materials and personnel in
vertical direction to a height
• Mixing and paving: Portland cement concrete mixers mounted on trucks, self-
propelled Portland cement concrete paving mixers, truck-mounted
bituminous distributors and bituminous paving machines.
• Construction tools and other equipment: Air compressors, pumps and such
pneumatic or electric tools as drills, hammers, concrete vibrators and saws.

27. To manage the cost of operation of jobsite equipment, contractor has to
records two types of data:
I. the time the equipment is operated
II. the rate to be charged for each hour of operation.
The actual equipment charge on a project depends on whether:
I. equipment is leased or rented for the job or
II. is owned by the company.

28. Lease arrangement
• If it is leased for the project duration or some part thereof, the lease cost will
be directly charged to the project. Time cards (similar to labour time cards)
will be used to record the actual time spent by the equipment and
operating personnel
• If the lease payments are based on a fixed monthly charge plus an hourly
rate, the recorded hours will become part of the payment basis
• If the lease is on hourly rental arrangement, the actual hours will be
multiplied by the hourly rate to determine the payment.

29. Owned by the contractor
• If the jobsite equipment is owned by the company, it is common practice for
the company to establish ‘rental rates’ that are charged to its projects by the
hour, day or week.
• The costs of owning an equipment usually include the capital recovery cost
of the purchase price (sometimes denoted by depreciation plus interest),
licensing and insurance.
• Other costs incurred as a consequence of ownership and operation include
fuel, oil and lubricants, routine servicing and maintenance, major overhauls
and labour costs of operating personnel
• The company must decide whether to embed these costs into the rental rates
or have the projects charge actual costs against their budgets.

30. • Except for labour costs and possibly fuel, oil and lubricants, it is probably in the
best interest of company and its equipment fleet to include the other costs in
the rental rates.
• Otherwise, a project manager may neglect upkeep and maintenance on
equipment assigned to the project, in the interests of showing a higher job
‘profit’.
• No matter how the costs are charged, the maintenance of construction
equipment is an important jobsite function
• Instead of including the cost of construction equipment in each bid item, the
contractor may calculate and add a single amount toward the end of the process,
almost as an ‘overhead’ item.
• If a fleet of equipment is expected to be utilised throughout most of the project,
the costs, based on hourly, daily or monthly lease or rental rates and the total cost
of any owned equipment, will appear as one item on the cost estimate summary

31. • In some cases, maintenance and repairs are performed in less than ideal conditions.
E.g. a broken scraper axle being welded in a place adjacent to a mudhole beside a
roadway embankment where it failed, late at night in the presence of traffic,
mosquitoes and artificial light.
• Hence, records of maintenance efforts and costs are essential to make proper
charges and also to help decide when equipment should be replaced rather than
repaired.
• Two equipment-related decisions are usually not directly within the purview of a
CM and they are:
(1) whether to lease, rent or purchase
(2) when an equipment should be replaced rather than repaired
• For most contractors, these questions are studied and resolved by central office
staff, often with substantial amounts of forecasting and economic analysis.

32. Jobsite management
Jobsite visits and checklists
• To carry out meaningful preliminary job planning, intimate knowledge of the
construction site is required after the preliminary examination of drawings and
specifications
• If the undertaking is a highway project through a wilderness area, a visit on foot or by
tracked vehicle will bring the contractor in close contact with site conditions
The information needed concerning a wide variety of site and local conditions are:
1 Project location
2 Probable weather conditions
3 Availability of electricity, water, telephone, and other services

33. 4 Access to the site
5 Local ordinances and regulations
6 Conditions pertaining to the
protection or underpinning of adjacent
property
7 Storage and construction operation
facilities
8 Surface topography and drainage
9 Subsurface soil, rock, and water
conditions
10 Underground obstructions and
services
11 Transportation and freight facilities
12 Conditions affecting the hiring,
housing and feeding of workers
13 Material prices and delivery
information from local material dealers
14 Rental of construction equipment
15 Local subcontractors
16 Site clearing.

34. DISPUTE PREVENTION AND RESOLUTION
• Dispute is inevitable on many construction projects because of many factors
and the interest of the parties involved
• Despite these potentials for disputes, parties must continually avoid it and
seek softer means of addressing their issues
• Usually, many conditions of contract usually stipulate the preferred dispute
resolution method (Arbitration)
• Dispute arises when one of the parties is unsatisfied with the result of a claim
and conflict becomes an altercation

35. • During dispute, contractor must have exhausted the claims process before
pursuing the dispute resolution process
• A contractor that files a lawsuit immediately when a potential claim arises will
be asked to follow the due process before resorting to court.
• An application for arbitration is also likely to be denied under the same
circumstances
• Classification of construction contract disputes
• Legal dispute and
• Technical dispute

36. • The legal aspect has to do with whether the party seeking redress has any
legal entitlement to a remedy, based on interpretation of the contract and
other documents
• Technical data is used to ascertain the magnitude of recompense in legal
aspect. Most disputes contain both of these aspects
Dispute prevention
• A construction project will be better if disputes among parties can be
prevented or minimized altogether.
This requires the effort of all the parties in the following ways:

37. i. Accurate, complete design documents must be used for projects
ii. Contract provisions should allocate risks equitably among the parties.
iii. Constructability reviews should be encouraged during design process,
taking note of the cost and schedule impacts of various alternatives.
iv. Partnering, which is a means of fostering cooperation throughout a
building process must be encouraged.
v. A reasonable, sufficiently detailed project programme must be produced
and adhered to by all parties. Adequate flexibility must be part of the
management of the programme, to enable the parties to deal with
unforeseen circumstances that may delay execution.

38. v. Project records must be thoroughly maintained by all parties
vi. Dispute review boards or single experts for smaller projects are
encouraged be put in place throughout a project to deter or resolve
disputes from their early stages
Dispute resolution through litigation (court systems)
• Disputes in the past often been addressed through the legal process
(litigation).
• Alternative dispute resolution methods are becoming more popular because
of the perceived high cost, time-consumption, uncertainty and publicity of
the litigation method.

39. • Courts still treats construction disputes under the civil law, rather than criminal law
(violation of public law)
• The plaintiff is the party bringing the complaint to lawsuit (filing the suit) and the
defendant is the party being sued
• Lawsuit proceeds can be divided into:
• Pre-trial activities (complaint is filed, defendant is designated, and relief
being sought is described)
• Trial activities
• The complaint, and the summons, is then delivered to the defendant
• Summons indicates that a suit has been filed, specifies the court which has
jurisdiction and directs the defendant to respond within a stipulated time-frame.

40. The defendant may respond in one of the following ways
• Provide no answer at all, in which case the court decides in favour of the plaintiff
with no further proceedings
• Issues a statement claiming there are insufficient facts to support the case
• Deny the claims altogether;
• State that an affirmative defence will be provided, including new information
sufficient to preclude recovery by the plaintiff;
• File a counterclaim.
• Either side may file a request for a summary judgement (in this case the position
taken is that, the facts are not disputed and therefore a trial is not required)

41. • Discovery is a process by which each party learns as much as possible about
the position of his adversary before trial commences. E.g. copies of
documents, sworn witnesses, written questions, etc.
• Before the trial begins, the judge convenes one or more pre-trial
conferences, at which procedures and schedules are decided, the issues are
clarified and attempts are made to settle the case out of court.
• A judge will hear the case and render a decision without Jury. Such a trial is
called a bench trial.
• Sometimes, a jury of lay persons are made to listen to the trial testimony
and decide in favour of one of the parties based on his understanding.

42. Whether or not a jury is involved, trial is done in the following order:
• Counsel for each side presents opening statements, after which the plaintiff’s side
presents testimony to support its case.
• The direct examination of witnesses may be followed by cross examination by the
defendant’s side.
• After that, the plaintiff’s side may conduct a redirect examination of its witnesses
and the defendant’s side may follow with a re-cross-examination
• The defendant may ask the judge to dismiss the case on the basis that there is not
enough evidence to support the case.
• If this motion is unsuccessful, the defendant presents its side of the case, beginning
with its direct examination and continuing as outlined above.

43. • After closing arguments, the judge issues instructions to the jury (if there is one) to
conducts its deliberations and reach a verdict
• If the post-trial motions were denied, the judge will enter and give a final judgment
• The judgement of the judge may be appealed to a higher court
• The appeal process does not re-try the case, instead it only decides if any errors of
law were committed during the trial
• Attorneys have to present their briefs, stating their positions to the appellate court.
• Evidence must be real/physical evidence, such as document, building material,
testimony, or statements by witnesses.

44. • The types of evidence allowed are defined; no hearsay evidence, or
second-hand information
• However, an expert witness, such as a professional engineer, is
allowed to offer opinion testimony if the topic is within their area of
expertise
• Records of trials are usually kept and their decisions may be used as
a means of establishing and strengthening the arguments of a party
through judicial precedent.
• However, due to the challenges mentioned earlier for litigation,
alternative dispute resolutions are being encouraged.

45. Alternative resolution methods
• Negotiation is a voluntary process by which the parties come together to
attempt to resolve their differences without the aid of an outside third
party
• Conciliation involves a third party in the process of settling a dispute but
with a small role
• In Mediation, the outside party has a larger role to play
• Currently, Dispute review boards (DRBs) are an increasingly popular
method of resolving construction disputes. A distinguishing characteristic is
that a DRB is chosen at the outset of the project and is available
throughout its duration to hear and attempt to resolve disputes.

46. • The decision of the DRB is not binding, hence, either party may reject the board’s
recommendation, after which the dispute moves on to arbitration
MINI-TRIAL
• A mini-trial is basically a structured form of mediation, involving top management personnel
from each side taking the part of a ‘jury’
• A mini-trial is a private, non-binding procedure (unlike mediation) that gives the parties the
psychological satisfaction of court proceeding, without the cost, delay and aggravation of
court
• Preparation for a mini-trial consists of developing short 10–15 page position papers to
exchange with the other side. During the hearing, attorneys or others from each side make
brief presentations to a panel consisting of (1) key executives from both sides who have the
full power to settle the dispute and (2) the neutral advisor
• Management representatives can interact and can ask clarifying questions. A short rebuttal
period is permitted, after which the panel meets in private to attempt to resolve the dispute

47. • The previous five alternative dispute resolution methods might be considered
non-adversarial and they are collectively sometimes called
reconciliation/arbitration.
• They are private, voluntary, their results are non-binding; any party may
terminate the proceedings at anytime to resort to litigation.
• Other methods apart from these are binding and more adversarial

48. Advantages of arbitration
• The method provides for resolving disputes as they arise, rather than resorting to a
lawsuit at the end of the project
• An arbitrated case can be processed more quickly than a court trial, since the trial
has to be fitted into crowded court schedules and involves more evidence and
procedures
• Arbitration tends to be less costly than a court trial
• A panel of technical experts, or a single expert, may be more capable of sorting out
complex technical arguments than a judge, whose primary training is in the law, or
a jury of lay persons
• Court proceedings may preclude the admission of certain facts or evidence that are
relevant to the case

49. Disadvantages of arbitration
• If hearsay evidence is allowed, unjust decisions may result
• Arbitration decisions can be reached without concern for statute and
common law
• The right of appeal from an award is limited
• Some important parties may not be subject to arbitration, such as
subcontractors in a construction industry case
• Decisions are not part of the public record and thus cannot be used as
precedent

50. Common issues that lead to dispute
• Differing site conditions
• Delays
• Termination of contract
• Default acts or omissions by the contractor
• Substandard, defective or non-conforming work
• Failure to pay subcontractors and suppliers
• Failure to pursue the work diligently

51. Common issues that lead to dispute (cont’d)
• Failure to supply enough workers with proper skills and enough materials
• Failure to comply reasonably with the project programme
• Violation of laws, ordinances and regulations
• Non-payment of various taxes
• Failure to secure required permits and licence
• Non-compliance with safety laws
• Other substantial breaches of the contract

52. LABOUR UNION
• If the contractor has negotiated collective bargaining agreements with construction
trade unions (also called craft unions), either by itself or as part of a multi-employer
bargaining unit, the source of labour will be the local unions.
• Whether or not a union contractor was directly involved in negotiating the union
agreement, the contract, when signed, is binding upon both parties, and the
relations between contractor and worker are largely governed by that contract.
• The contractor requests from the office of the local union, the personnel needed for
the project
• When a construction labour is employed on a project through this medium, no
negotiation on rates of pay and working conditions takes place, because they would
have been finalised in the collective bargaining agreement

53. • Such agreements are usually made between the contractor or an association
of contractors, on one side and either individual craft unions on behalf of
their members in a local or regional area or with alliances of unions, on the
other.
A typical bargaining agreement of labour unions:
• covers a period of 1 or 2 years and
• contains a long list of agreed provisions covering:
(1) wages and fringe benefits, (2) hiring procedures, (3) hours of work and overtime pay, (3)
holidays, vacations and leaves of absence, (4) apprentice programmes, (5) work rules
stipulating types of work that will be assigned to members of a certain union, (6) number of
forepersons required and tools and transportation allowances, (7) rules governing strikes
and work slowdowns, (8) the geographical area of jurisdiction covered by the agreement, (9)
substance abuse, (10) safety and accident provision and non-discrimination issues, (11)
dispute resolution procedures and (12) a subcontractor clause that prohibits the contractor
from engaging a non-union subcontractor to do specified types of work.

54. • Large contractors may sign collective bargaining agreements with the national
bodies of labour unions covering all work within that country.
Advantages of labour unions
• Easy and ready access of contractors to a pool of skilled labour
• Apprentice programmes by unions to train new entrants into the crafts are a
major source of expertise in construction.
• Workers come to the job with already-defined rules governing their
employment.

55. Disadvantages of labour unions
• These rules may also be a disadvantage, because all workers of a certain classification have
the same benefits and this precludes opportunity to reward merit
• Because negotiations are conducted with the union and not the employees, and there is no
guarantee of long-term employment, the worker’s loyalty usually lies more with the union
than the employer.
Types of labour union membership
• Closed shop: in this arrangement, an employee must already be a member in order to be
employed
• Union shop: in this arrangement, a new employee is not required to be a member of the
union but must join within a certain number of days to enjoy the benefits
• Agency shop: in this arrangement, there is a union and a collective bargaining agreement.
However, union membership is voluntary; non-members have the same privileges as
members, but have no voice in union matters

56. Project Labour Agreement
• A Project Labour Agreement (PLA) is a collective bargaining agreement which
governs labour relations between all labour unions and all contractors
(including subcontractors) for the duration of the project
• All parties to be involved in the construction – unions (contractors, owners
(often through a construction manager) are required to be signatories to the
PLA
• The PLA provides standardized work practices such as hours; holidays;
grievance, dispute and arbitration procedures; and overall labor/management
harmony for the duration of the project.
• Most importantly, the PLA precludes any strikes, lock-outs, work stoppages
and/or any other disruption of work for any reason during the term of the PLA.

57. Open shop and merit shop
• Open shop is when a contractor has no affiliation with a national
organisation and sets all of its rules regarding employment of its workers
• Merit shop is when a contractor is a member of a regional or national
contractors’ association and agrees to abide by employment practices
established by that organisation
Characteristics of non-union contracting arrangement
• Hires his own employees and arranges his subcontracts without regard to the
unions
• Establishes his own rates of pay and fringe benefits
• Recruits, hires, trains, evaluates, promotes and discharges employees on his
terms

58. challenges of contractors with non-unionised work forces are:
• The risk of recruiting and the assurance that they will have adequate skills
are on him
• Recruiting takes place through advertising in local media, by way of open
shop hiring halls, and, in the case of merit contracting, through the use of
registers maintained by contractors’ associations.
• The burden of training is upon the contractor. Merit shop associations may
be undertaken to fulfil this skill development need.
Advantages
• Non-union contracting allows the contractor more flexibility in the
composition and assignment of work crews

59. Advantages (cont’d)
• permits the employer to pay workers based on their ability and performance
and generally results in less expensive projects.
• Although wage rates tend to be somewhat lower than in the unionised sector,
employment is more continuous
• Because they are employed directly by the contractor, workers tend to be
loyal towards their employers and take interest in the company’s financial
well-being

60. OPERATIONS RESEARCH
There are many definitions for operations research, but for our study, it will be
described as the study of processes or systems and the application of
quantitative methods to the systems to design decision-making models
• The models developed do not provide solutions to the problem, but can lead
to an optimum solution. That is, there are always trade-offs due to the
constraints of the system
• OR models are quantitative representations of systems based on random
events occurring in a changing or uncertain future
• An OR model is used to predict random events based on probability theory

61. • The OR model is solved to its optimum solution by changing the variables and
generating the results
• Manipulation of input to arrive at the optimal results by starting with a wide
range of scenarios and then refining the model with each iteration is known
as simulation and sensitivity analysis
• The arrival of an optimum solution through many iterations of a model is done
with computers
• OR relies heavily on the use of computers to generate solutions for many
different scenarios without having to experiment on the actual system that
is being studied

62. The five steps of the scientific approach used by OR are:
1. Observe the system or process
2. Define the problem
3. Develop alternative solutions (models)
4. Find optimal solutions to the model
5. Implement the optimal solution

63. These five steps do not represent the end of the scientific approach, they are
a continuing cycle. As the optimal solution is implemented, more problems
needing resolution are uncovered. Changes to the system occur and
refinements are needed on an ongoing basis.
Questions to be answered for problem-solving and decision-making in OR
1. What is being done?
2. Why is it being done?
3. How is it being done?
4. How can we do it better?

64. Examples of the application of OR
• Queuing, scheduling, distribution, inventory, maintenance,
production, supply versus demand and defective product type
problems
Essential characteristics of OR:
1. Systems orientation
2. Use of interdisciplinary teams
3. Adaptation of the scientific approach

65. • The most common applications of OR to construction setting is simulation
models
• Simulation tests a developed model under different scenarios by changing
the values of the variables until an optimal solution is found

66. Stages involved in OR (some may overlap or be undertaken
concurrently)
1. Describe problem in its
context
2. Collect preliminary
information
3. Define problem explicitly
4. Set study objectives
5. Formulate the OR problems
6. Construct model
7. Collect detailed data
8. Test the model
9. Select solution from
alternatives
10. Implement and monitor
solution.

67. WORK STUDY
Work Study is a systematic examination of the methods of carrying out
activities so as to improve the use of resources and set up performance
standards for the activities.
Branches of work study:
1. Method study
2. Time study (Work measurement)
Method Study
Method study is the systematic recording and critical examination of existing
and proposed ways of doing work, as a means of developing and applying
easier and more effective methods and reducing costs. It uses different sets
of techniques to do so

68. Objectives of Method Study
• Improvement in use of all the inputs i.e. men, machines, material, money, time
and information.
• Economy in human effort and reduction of unnecessary fatigue.
• Layout improvements.
• Improvement in design of plant and equipment.
• Improvement in safety standards and procedures.
• Development of better working environment.

69. Seven Steps of Carrying Out
Method Study: The Process Different Recording Techniques
1. Define existing method
2. Record existing method
3. Examine existing method
4. Develop new method
5. Define new method
6. Install new method
7. Maintain new method
(1) Outline process charts
(2) Flow process chart: man type, material type,
equipment type
(3) Two handed process chart
(4) Multiple activity chart: using time scale
(5) Simo chart: using time scale (6) Flow diagrams
(7) String diagrams (8) Cyclograph
(9) Chronocyclegraph (10) Travel Chart

70. Some Details on Step 3 of the Process of Method Study i.e. Examine
Examine step uses questioning technique. There are two types of
questions asked:
1. Primary questions
2. Secondary questions
Primary questions include:
• Purpose: for which activity is being done
• Place: at which activity is being carried out
• Sequence: in which activity is being performed

71. Primary questions (cont’d)
• Person: by whom activity is being rendered
• Means: by which activity is being accomplished
Purposes of primary examination are to:
• Eliminate, Combine, Rearrange and/or Simplify activities
Secondary Questions
Secondary questions subject the answers to the primary questions to
further query so as to determine whether possible alternatives of
place, sequence, persons and means are practicable and preferred as
a means of improvement upon the existing method

72. Secondary Questions (cont’d)
1. Purpose: (What is done?, Why is it done?, What else might be done?, What
should be done?)
2. Place: (Where is it done?, Why is it done there?, Where else might it is done?
Where should it be done?)
3. Sequence: (When is it done?, Why is it done?, When might it be done?, When
should it be done?)
4. Person: (Who does it?, Why does that person do it?, Who else might do it?,
Who should do it?)
5. Means: (How is it done?, Why is it done that way?, How else might it be
done?, How should it be done ?)

73. Some Details on Step 5 of the Process of Method Study i.e. Define New (Improved)
Method:
A report on new improved method should be prepared and it should include:
• Description of the method
• Relative costs of material, labor and overheads of the new method, the existing
method, and the expected savings
• Cost of installing the new method, including cost of new equipment
• Diagram of the work place layout
• Tools and equipment to be used and diagrams of fixtures, etc.
• Executive actions required to implement the new method

74. Some Details on Step 6 of the Process of Method Study i.e. Install New (Improved)
Method
• Gaining acceptance of the change by the Management
• Gaining acceptance of the change by the workers
• Keeping a close eye on the progress of implementation of the new method till it starts
running satisfactorily
WORK MEASUREMENT/TIME STUDY
Work measurement is the application of techniques designed to establish the time for a
qualified worker to carry out a task at a defined rate of working or at a defined level of
performance
• It measures the time taken to perform an operation or a series of operations
• It aims to separate ineffective time from effective time.

75. Objectives of Work Measurement
• Finding ineffective time in an activity or a process (series
of activities)
• Setting standard (norms) for output level
• Evaluating workers’ performance
• Assessing and planning manpower needs
• Determining available capacity
• Comparing various work methods
• Facilitating operations scheduling
• Establishing wage incentive schemes
Some Techniques of
Work Measurement
• Stop-watch time study.
• Work sampling.
• Predetermined time
standards (PTS).
• Standard Data.

76. Conceptual framework for carrying out work measurement
The following are the concepts for undertaking work measurement:
• Qualified worker: has physical attributes, required intelligence,
education, necessary skills and knowledge to carry out the work in
hand
• Standard rating: assessment of worker’s rate of working in
correspondence to standard pace (or standard rate)
•
• Standard performance (pace or rate): average rate of output which
a qualified worker will naturally achieve without over-exertion over
the working day or shift, provided that he knows and adheres to
the specified method

77. • Standard time: The time taken by a qualified worker to achieve
standard performance
Steps in Carrying Out Work Measurement (Determining the Standard Time):
The Process
1. Obtain and record all available information about the job, the worker and
the surrounding conditions likely to affect the execution of the work
2. Record the complete description of the method, break it down into
elements
3. Measure with a stopwatch and record the time taken by the worker to
perform each element of the operation

78. 4. Assess the rating of the worker
5. Extend the observed time to “basic/expected time” by factorizing
the actual time (observed time) by the assessed rating.
i.e. Observed time - Basic time. Basic time is like expected time
6. Determine the allowances (e.g. personal allowances, relaxation
allowances, allowances for the working conditions etc.) to be made
over and above the “basic time” for the operation
7. Apply those allowances on the “basic time”.
8. Thus, determine the “standard time” for the operation

79. Management Information System (MIS)
DEFINITION OF MIS
A Management Information System is an integrated user-machine system for
providing information to support the operations, management, analysis, and
decision-making functions in an organization
The system utilizes:
• Computer hardware and software
• Manual procedures
• Models for analysis, planning, control, and decision making, and
• A database

80. SUBSYSTEMS OF AN MIS
Methods of defining the subsystems of an MIS
• According to the organizational functions which they support
• According to managerial activities for which they are used
ORGANIZATIONAL FUNCTION SUBSYSTEMS THEY SUPPORT
Major Functional subsystem Some typical uses
Marketing Sales forecasting, sales planning, customer
and sales analysis
Manufacturing Production planning and scheduling, cost
control analysis
Logistics Planning and control of purchasing,
inventories, distribution

81. ACCORDING TO MANAGERIAL ACTIVITIES
Major managerial activity Typical uses
Personnel Planning personnel requirements, analyzing
performance, salary administration
Finance and accounting Financial analysis, cost analysis, capital
requirements planning, income measurement
Information processing Information system planning, cost-effectiveness
analysis
Top management Strategic planning, resource allocation

82. ACTIVITY SUBSYSTEMS
Activity subsystem Some typical uses
Transaction
processing
Processing of orders, shipments, and
receipts
Operational
control
Scheduling of activities and performance
reports
Management
control
Formulation of budgets and resource
allocation
Strategic planning Formulation of objectives and strategic

83. MIS AS SEEN BY THE USER
USER USES
Clerical
personnel
Handle transactions, process input data and answer inquiries
First-level
managers
Obtain operations data.,Assistance with planning, scheduling,
identifying out-of-control situations, and making decisions
Staff
specialists
Information for analysis. Assistance with analysis, planning and
reporting
Management Regular reports, Adhoc retrieval requests, Adhoc analyses, Adhoc
reports, Assistance in identifying problems and opportunities,
Assistance in decision-making analysis

84. Classification of Management Information System
1. Operating elements
2. Decision support
3. Management activity
4. Organizational function

85. JUST-IN-TIME (JIT) MANUFACTURING
• JIT is a philosophy as well as a technique that guides a manufacturing
company in organizing and managing its business more effectively, and in
planning and controlling its operations more efficiently
• JIT Manufacturing tries to smoothen the flow of materials from the suppliers
to the customers, thereby increasing the speed of the manufacturing process
Objectives of JIT
1. To be more responsive to customers
2. To have better communication among departments and suppliers

86. Objectives of
JIT (cont’d)
3. To be more flexible
4. To achieve better
quality
5. To reduce product
cost
JIT AS A PHILOSOPHY
Elimination of waste
1. Waste of overproduction
2. Waste of movement
3. Waste of inventories
4. Waste of motion
5. Waste of making defects
6. Waste of process itself

87. The principle of eliminating the wastes includes:
1. All waste should be eliminated
2. Waste can gradually be eliminated by removing small amounts of inventory from the
system, correcting the problems that ensue, and then, removing more inventory
3. The customers' definitions of quality should drive product design and manufacturing
system
4. Manufacturing flexibility is essential to maintain high quality and low cost product l
5. Mutual respect and support should exist among an organization, its employees, suppliers,
and customers.
6. A team effort is required to achieve world class manufacturing capability
7. The employee who performs a task is the best source of suggested improvements

88. Continuous improvement/One Less at a Time
The procedure of “one less at a time” is as follows:
1. If the inventory is equal to zero then stop, else
2. Select the most prioritized process to be improved
3. Improve the process
4. Is the process economical? If no, go to step 3
5. Reduce the inventory by a small amount
6. Go to step 1

89. The third step “Improve the process” can be divided into following steps:
1. Observe the existing method and collect related data on the selected
process
2. Investigate and analyze the data to generate alternatives to improve the
process
3. Evaluate the alternatives to determine the new method for the process
4. Install the new method and educate the operator
5. Maintain the new method

90. View problems as opportunities
• JIT philosophy sees the problems as the opportunities. A problem is an opportunity to improve. JIT
exposes problems rather than covering them
Quality at the source
• Defects may occur at the design stage, any workstation in the production line, or the suppliers’ plants.
Quality does not come from inspection. It does not come from manufacturing either. Quality comes
from good design
Simplification
Simplicity is a key to successful manufacturing. Products should be designed to be easy to manufacture,
install, and repair
Visual Control
Visible control tools are used wherever possible
Focus on Customer Needs
In JIT philosophy, only values in customers’ eyes are real values. Values perceived by engineers but not
accepted by customers are wastes

91. Production to Customer Demand
In JIT philosophy, only immediate customer demands are produced. Extra items not
Just-In-Time Manufacturing required immediately by the customers are not put into
production
Respect for Individual
Each individual in a company is an important asset. Education and training are
frequently conducted to enhance the capability of the employees
JIT AS AN ENVIRONMENT
In addition to philosophical concepts, JIT also provides an environment in which
products are manufactured in a simpler way.
Repetitive Manufacturing
Repetitive manufacturing is the production of discrete items in a production line with
fixed routings. The items can be a product or a family of products. The product is
standard or made from standard modules

92. Total Quality Management (TQM)
Total quality management is a management approach used to achieve quality Just-In-
Time Manufacturing improvement and long-term success through customer
satisfaction. TQM involves all members of the organization, and is meant to improve
the quality of all processes, products, services, operations, and corporate culture
Total Productive Maintenance (TPM)
“Preventive maintenance” is a restrictive term which mentally prohibits us from
thinking more broadly. TPM means preventive maintenance and continuing efforts to
adapt, modify, and refine equipment in order to increase flexibility, reduce material
handling, and promote continuous flows
Total Employee Involvement (TEI)
Elimination of waste and continuous improvement are the central ideas of the JIT
philosophy. They can be accomplished only when employees are cooperative

93. Supplier Partnership
In order to establish a smooth flow of materials into the factory, a close and
reliable relationship with the suppliers is very important. Supplier partnership is
the establishment of a working relationship with a supplier whereby the two
organizations act as one. Relationships with the suppliers should be based on
mutual trust, cooperation, and long-term commitment
JIT AS A CONTROL TECHNIQUE
In daily operations, JIT provides useful control methods
The characteristics of a JIT control technique include uniform loading,
repetitive processes, pull system, using production cards, and synchronized
production.

94. Pull System
JIT control pulls materials from the previous workstation. The workstation replenishes any materials
consumed by its following workstation. Since only the consumed materials are produced, the
inventories between workstations never accumulate.
Uniform Loading
The loads for jobs in every workstation are equal. This makes the pull system possible. If uneven
loading exists, the following workstation may have to wait for the materials from the preceding
workstation. If the demand increases, the production rates in all workstation increase together. If the
demand drops, all workstations may have the same level of idleness
Production Card
JIT control uses various cards to transmit production signals. During the production, these cards are
attached to and detached from the materials. The cards have various shapes and colors to indicate
different purposes
Synchronized Production
Synchronized production is a manufacturing practice in which production activities in each workstation
are synchronized with certain control signals